ER26-2691-000 · 2026-10-09 · FERC

Order Accepting Proposed Tariff Revisions (Duke Energy Carolinas pro forma NITSA, ER26-2691-000 and -001)

Topics in the text: Cost allocation · Credit and exit · Registry access

What the document says

Unpaginated filing

FERC accepts a shortfall payment for network loads of 100 MW or more.

The purpose of the Shortfall Payment mechanism is to reduce the potential cost impacts of large load service requests on other DEC transmission customers if the Network Load does not materialize or otherwise takes less service than anticipated. Source text

Unpaginated filing

The 100 MW large-load threshold is just and reasonable.

Based on the record before us, we also find that the 100 MW threshold is just and reasonable. Source text

Unpaginated filing

Shortfall payments reduce, not add to, Duke's transmission revenue requirement.

Shortfall Payments serve to reduce, rather than add to, DEC’s revenue collection through its transmission revenue requirement. Source text

Unpaginated filing

Network Upgrade costs roll into transmission rates by default, large-load upgrades included.

Network Upgrades that are part of an integrated system benefit all system users. Source text

Unpaginated filing

Network Upgrade costs roll into transmission rates by default, large-load upgrades included.

That policy does not change based on the size or scope of Network Upgrades constructed to fulfill a transmission customer’s request for network service. Source text

Unpaginated filing

Duke may still file a non-conforming agreement with incremental rates.

the Commission will consider non-conforming NITSAs that include an alternative cost-recovery mechanism such as an incremental rate. Source text

Unpaginated filing

FERC rejects ElectriCities' comparability objection to the 100 MW terms as outside its retail jurisdiction.

The Commission lacks jurisdiction over retail customers, and we therefore dismiss ElectriCities’ argument. Source text

Unpaginated filing

Retail cost-shift worries from load additions are beyond FERC's jurisdiction.

we note that SACE’s concerns regarding retail cost allocation and rates pertaining to load additions are beyond the Commission’s jurisdiction. Source text

Responses and related views

Chang dissented over the lack of dedicated security

Commissioner Judy Chang · Direct response

Chang said Duke had not demonstrated that a promise to pay for 75% of forecast demand would protect existing customers if the responsible utility defaulted. She wanted security commensurate with the 15-year commitment.

Chang dissent, section on security requirements (unpaginated DOCX)

Rosner calls the tariff an improvement, with risk left over

Commissioner David Rosner · Direct response

Rosner said Duke’s previous tariff contained no comparable protection for households or small businesses. He accepted the added protection and said FERC should consider more if action by the states proved insufficient.

Rosner concurrence, first and second points (unpaginated DOCX)

Source sections

Printed headings where available; page ranges otherwise. Excerpts below are selected from the text by keyword.

Opening text

opening text

ER26-2691-000 ER26-2691-001 ORDER ACCEPTING PROPOSED TARIFF REVISIONS (Issued October 9, 2026) On May 29, 2026, pursuant to section 205 of the Federal Power Act (FPA)[fn:2] and Part 35 of the Commission’s regulations,[fn:3] Duke Energy Carolinas, LLC (DEC) filed revisions to its pro forma Network…
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Background

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All of DEC’s network customers have existing individual NITSAs on file with the Commission, most of which predate the 2012 filing of DEC’s pro forma NITSA.[fn:6] Proposed Tariff Revisions DEC proposes revisions to the body of its pro forma NITSA and existing attachments, as well as to add a new…
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Discussion

printed heading · Topic match: Cost allocation

DEC argues that, accordingly, DEC proposed section I.1 to apply to all NITS requests because it will ensure that Direct Assignment Facilities and Network Upgrades are truly needed and sized correctly to reliably serve the amount of load requested and to avoid potential cost shifts to other…
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Attachment A – (Specifications for Network Integration Transmission Service)

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DEC argues that this change is necessary because listing the customer’s owned generation and contracts in individual NITSAs should not be considered non-conforming.[fn:127] In section 6.7 (Request for Change in Service), DEC proposes to clarify that customers remain responsible for the costs of…
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Attachment B – (Delivery Points)

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Attachment B – (Delivery Points) DEC proposes to add bracketed placeholders for delivery point number and names and to remove the Delivery Point Data Sheet from its pro forma NITSA, in favor of posting it on the publicly available portion of its OASIS website.[fn:132] DEC states that this will…
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Attachment C – (Transmission and Distribution Rates)

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Attachment C – (Transmission and Distribution Rates) DEC proposes to revise the title of the attachment to add “Transmission” to reflect the reality that certain delivery points may be served by transmission or distribution facilities.[fn:133] DEC also proposes to duplicate the distribution rates…
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Attachment D – (Network Operating Agreement)

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Attachment D – (Network Operating Agreement) DEC proposes to delete the existing Attachment D (Power Factor Penalty) and replace it with a section titled “Network Operating Agreement.”[fn:135] DEC explains that it has proposed to delete Attachment D because: (1) the power factor requirements…
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Attachment E – (Other Charges/Credits)

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We note, however, that although we find DEC’s proposed revisions to its pro forma NITSA are just and reasonable and not unduly discriminatory or preferential based on the record in this proceeding, DEC may still (and we encourage it to) at any time either execute non-conforming NITSAs that provide…
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Background

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DEC’s Committed Revenue Contribution Proposal Does Not Include Sufficient Security Requirements to Protect Customers Against the Risk of Cost Shifts As discussed below, DEC proposes to require long-term financial commitments from LSEs that serve large loads.
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Conclusion

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We should, as the Commission has done,[fn:179] encourage utilities to voluntarily submit filings that bolster customer protections while rigorously scrutinizing those filings to ensure they actually protect customers against the risk of unjustified cost shifts resulting from the addition of large…
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Footnotes

Word notes · Topic match: Cost allocation

Off. of the President, Ratepayer Protection Pledge (Mar. 4, 2026), https://www.whitehouse.gov/releases/2026/03/ratepayer-protection-pledge/ (“Companies will pay for all new power delivery infrastructure upgrades required to service their data centers, including adequate network upgrade costs to…
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